Senior Official Claims: Efforts to Release Cryptocurrencies of 25,000 Blockchain Companies in China

By Dorothy 11/26/19 3:54 AM

Recently, China has been at the top and became the title for several consecutive weeks in the field related to cryptocurrencies and Blockchain. However, the most recently domestic-related projects have been drafted with illegal projects being the specific focus.

On Thursday, five financial and technology agencies led by China’s central bank jointly published Bluebook of Blockchain. It is outlining illegal and deceptive schemes in the blockchain industry.

Although that technology has reduced the quality of life in general, it has also inspired the “black industry”, which led to internet fraud to adjust 110 billion yuan (15.6 billion US dollars) according to such as Agencies – People’s Bank of China (PBoC), Chinese Academy of Social Sciences, China Payment and Payment Association, Beijing Blockchain Technology Application Association and Science Literature Publishing House Society has insisted in the publication.

In an interview, Yedong Zhu – president of the government-supported nonprofit Blockchain Application Association, said that about 25,000 Chinese Blockchain projects and companies that representing 89% of these companies, have may have tried to create and release their own token but sometimes float their own digital assets. While only 4,000 are completely strict on Blockchain applications.

Although China is still one of the largest cryptocurrency markets, mining and use are still allowed. After the crackdown in 2017, China stopped working on cryptocurrencies for a while and put the initial coin offerings (ICOs) out of the law.

Prohibited financial activities related to ICOs and cryptocurrency transactions were most recently launched in Chinese government’s withdrawal findings. Recently, Shanghai and Beijing have launched plans to inspect the campaign against cryptocurrencies, ask the public to report related companies and ask them to register, to close any remaining cryptocurrency exchanges.

Authorities have gone so far as to shut down any marketing firm promoting cryptocurrency companies and those that have forged into Blockchain companies to launch ICOs. Zhu said that:

“We need to ensure that Blockchain companies raise money illegally and commit financial frauds that are not included in government support programs.”

More than half of the 28,000 Blockchain companies are based in Guangdong province of southern China that next to Chinese Silicon Valley Shenzhen. While the rest often operate operations from Beijing and Shanghai, according to the report.

This report is one of three Chinese government “bluebooks” books on how to regulate the emerging fintech industry. There are two “bluebooks” released by the same group of agencies, but somewhat toward technology services for the relevant Chinese authorities.